cool-hand-luke-trading style

One of the aspects of trading that I’ve learned, is that it goes counter-intuitive to everything that society admires and holds dear. 

Here’s what the market punishes your for: 

Having courage and bravery

Getting back up when knocked down

Fighting against the odds

Holding on against the slimmest of hopes

Selflessness

But here’s what the market rewards you for:

Being a coward

Duck and running

Only trying when it favors the odds of success

Never having hope

Selfishness

If you’ve read this far you’ll agree that…

Cool-Hand Luke would’ve made a horrible trader. Getting back up when you’re knocked down, and having the courage to fight against insurmountable odds doesn’t favor success in the markets. 

Instead, when you’re getting knocked down, don’t get back up… move on. 

Don’t be courageous, jump ship when the trade isn’t working your way. 

There’s no room for selflessness unless your are into Wall Street Charity (an oxymoron in itself). 

Hoping that a trade will pay off for you, you’ll undoubtedly lose. The slimmest of hopes is just asking for catastrophe. So don’t hang on to losing trades. 

So remember, if you’re feeling heroic, brave, and everything that represents the character traits we all admire in society when you’re trading… well then you’re probably going to take an unnecessary beating. 

 

 

You Might Like

  • The rise of the retail trader in the stock market.

    The Retail Trading Revolution: How Small Investors Are Reshaping the Stock Market

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag